Performance driven reward systems will become a norm in workplaces as employers are forced to “rework their compensation packages” to attract and engage with their employees.
This is because salary increases fell by 0.4% to 5.2% last year, according to the 2016 Total Compensation Measurement (TCM) Survey by Aon Hewitt.
Although the gross domestic product grew at a steady 4.2%, the consumer price index was 1.8% higher in November last year compared with the figures for the same month in 2015, it said.
“The decline in salary increases translates to real wages diminishing for the Malaysian workforce.
“As a result, employers are pressured to rework their compensation packages to engage their talent more effectively,” said Aon Hewitt, a global talent, retirement, and health solutions business of Aon plc in a statement yesterday.
The survey, which measures how organisations are addressing projected salary budgets, variable pay, and cost-saving initiatives, was based on findings collected from 232 employers nationwide.
The salary trend for fresh graduates, however, remained optimistic as local employers are expected to continue “paying a premium” for jobs in high-tech and engineering related fields.
Fresh graduates in the field of engineering, research and development, and project management were offered the highest starting salaries over RM3,500 a month while fresh graduates in high-tech industries are paid 27% more than those in property and construction.
“Throughout the nation, more than half of the fresh graduates entering employment earned less than RM2,500 per month,” it said.
Aon Hewitt Malaysia managing director Prashant Chadha said fresh graduates, although inexperienced, are “digital natives” and that contributed to relevant skills needed in today’s market.
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